Why dealership mark up cars so much when we can see kelly blue book invoice price?

Question

Seriously, dealers keep telling me that the KBB is not accurate invoice price...are they right?

Answer 1

Nice design, resourceful information,user-friendly layout should be a good solution to your questions.http://car-price.bestips.info/free-price...

Answer 2

no they are not right.

kbb is.

they jack up prices cause there are lots of fools out there that believe they're getting a "deal"

never buy till you do your homework people!!

and they jack up prices cause they want to leave haggling room, make you THINK you're getting a steal when they knock off a grand...

Answer 3

The dealer is correct.  The difference will be small, but certain things that are included in an invoice are not on kbb pricing.  Invoices also fluctuate slightly based on which quarter of the year the car your looking at was built.  An invoice is what the dealer paid for the vehicle, car businesses are in business to make money, so they need to sell it for more than they paid for it.

Answer 4

Because there are surprising number of people who pay close to sticker price.

>>> dealers keep telling me that the KBB is not accurate invoice price...are they right?

See !! Even people like yourself (who is researched and prepared) start to doubt yourself.  THEY LIED !

Good Luck...

Answer 5

Auto prices are based on supply and demand, if a car is "hot" the can ask (and get) thousands of $ above MSRP. Case in point is currently the Prius, there is so much demand because of raising fuel prices that Toyota has reached the limit in how many cars they can manufacture.

Some people are actually willing to pay more for a USED Prius than a new one; because they can get the used one fast and not have to get on a waiting list.

On the other hand go buy a gas guzzling pick-up and the dealer will give you thousands of dollars back on the purchase.

Never buy a car (new of used) without reading the buyers bible:

http://www.carbuyingtips.com/

Answer 6

The KBB that you and I have access to is just a guideline.  Dealers use the yello NADA book, which is geared towards dealers and is updated very often.  You would be surprised how many people are not capable of negotiating a fair price for their car purchase and dealers just take advantage of those people.

My advice for people is to do their homework and at least use the KBB prices as a starting point.  

Have fun

Answer 7

bull c**p.  Go and trade your car in, any car---the cheating salesman will pull up kbb and give you TRADE IN-FAIR CONDITION VALUE FOR YOUR CAR.

Then when you buy their car, it is over priced---WAY over priced when you look it up on KBB.  This happened to me, I traded my car in to the dealer, a 2007 chevy aveo--he gave me $5,500 and I wanted to buy his 2005 ford crown victoria, they had it priced at $13,000!  Look it up on kbb, it's worth $7,000 and the trade-in value is even lower ($5,000!!!).  So I told the dealer that I'm not gonna pay $13k when kbb says it is worth $7k.  He then said, "well, we don't price them according to kbb, we price them according to the market."  Ok so if what he said is true, then THAT CROWN VICTORIA AINT WORTH S**t!  I mean seriously, who is looking for a ford crown victoria now days with the gas prices crisis????

Bottom line is:  Dealers are the worst cheaters EVER!  I hate them all!  Never buy from them, unless it is a brand new zero mile on the odometer car!

Answer 8

They are correct. kbb.com, edmunds.com are just guides. However they are very close (give or take $200-500). Just go to a dealer and pick out a car and ask to see the invoice. Its not like back in the day anymore! there is too much competition out there!

Good luck!

Answer 9

Kelley Blue Book is not a bible for car prices. It's only AVERAGE data collected by Kelley based on auction prices, dealer transaction prices, and a whole lot of educated guessing. But they guess wrong, which is the case right now with SUV and truck prices. Their prices are WAY too high.

Dealers set prices based on what they pay for cars, not what some book or web sites says. They know how much they paid, they know how much profit they must make to stay in business, and they know the buying habits or the customers in their area. All of this goes into a dealer's prices, not KBB.

On the other side, dealers make more profit per vehicle on used cars than on new cars. Many dealers who sell both used and new cars make more money on used car sales and service than on new cars. In this sense, used car prices have a lot of markup and a lot of room for negotiation. But we don't know how much markup because we don't know how much he paid for each car. It's not like knowing invoice prices on new cars.